Real Estate
Flat Sizes in Top 7 Cities Witness a 32% Surge in 5 Years, NCR Leads with 96% Growth
By GeoSquare News Desk · Published 2024-08-12
The average flat size in the top 7 cities has grown by 32% in the last five years, from 1,145 sq. ft. in 2019 to 1,513 sq. ft. in H1 2024, according to the latest research by ANAROCK Research, an independent real estate services company.
Among all big cities, NCR saw the highest growth of 96% in average flat size during the said period, from 1,250 sq. ft. in 2019 to 2,450 sq. ft. in H1 2024. NCR also overtook Hyderabad to record the highest average flat size of 2,450 sq. ft. in H1 2024, compared to 2,010 sq. ft for Hyderabad.
Average flat sizes in Chennai and Bengaluru were 1,450 sq. ft. and 1,630 sq. ft., respectively, in H1 2024, while Kolkata’s average flat size stood at 1,125 sq. ft. and Pune's at 1,103 sq. ft.
Besides seeing the highest rise in average flat size in the last five years, NCR has recorded the highest rise in the last six months at 30% – from 1,890 sq. ft. by 2023-end to 2,450 sq. ft. in H1 2024. This has been attributed to new supply in the luxury segment, says ANAROCK.
Of around 24,300 units launched in NCR in H1 2024, luxury homes comprised the maximum share at 77% or 18,600 units.
“The jump in NCR’s average flat size is largely due to the increased new supply of luxury apartments in the last year. Developers here are responding to the higher demand for spacious luxury homes with appropriate supply,” says Santhosh Kumar, Vice Chairman, ANAROCK Group.
This is a shift from the previous trend when affordable housing dominated NCR’s supply. “Affordable segment supply in NCR has been declining steadily in the last few years.”
Among the top seven cities, the Mumbai Metropolitan Region (MMR) saw the least growth in the average flat sizes in five years. “The average flat size in MMR rose from 784 sq. ft. in 2019 to 825 sq. ft. in the first half of 2024 -- a mere 5%. In this five-year period, only 2020 saw a notable 21% annual rise in the region’s average flat size against 2019. Since 2020, the average size here was the highest in 2022 at 840 sq. ft. It fell by 5% in 2023 against the preceding year,” says Kumar.
These trends, says ANAROCK, suggest a significant jump in flat sizes across cities because of the pandemic-specific demand profile in the past year. The rise on a half-yearly basis highlights “continued consumer preference” despite life returning to normalcy after Covid.
Home sales are soaring post-pandemic, smashing records in the top seven cities including MMR, NCR, Pune, Bengaluru, Hyderabad, Chennai, and Kolkata. H1 2024 saw total sales of nearly 2.51 lakh units across the top 7 cities, 9% more than the same period last year (H1 2023).